Provincial Governments Making E-Procurement Easy
Electronic procurement helps reduce corruption across Indonesia
The Government of Indonesia estimates Rp36 trillion (US $4 billion) is lost every year because of corruption within the existing tendering and procurement process.
The Indonesia Control of Corruption Program (ICCP) funded by the Millennium Challenge Corporation through USAID Indonesia is supporting the establishment of five e-government procurement (e-GP) centers in the capitals of East Java, West Java, Gorontalo, West Sumatra, and Central Kalimantan. The provincial governments will announce and post their procurement needs through the system and bidders will submit their secure bids from any computer linked to the Internet, or at work stations in the e-GP offices. Having the available tenders published online increases the transparency of government transactions and also reduces interaction between the vendors and officials, the point where corruption or collusion often takes place.
MCC/ ICCP
A male staff member of the e-GP center for Gorontalo Province explains the system to an "end-user" of the system, a woman from the local planning agency.
As of September 2008, the centers in West Java, Gorontalo, and West Sumatra had begun procurements using the e-GP system, with values totaling over $350,000 dollars. Items for tender include a dump truck, building equipment, laboratory supplies, and small household appliances for low-income families.
In addition to the five centers supported by ICCP, there are a number of other centers that will use the e-GP system designed by the national government. While at different stages of development, the provinces of Yogyakarta and Riau and the cities of Denpasar (Bali) and Makassar (South Sulawesi) are also beginning e-GP through this system. The national e-GP website can be found here.
ICCP has been involved not only in providing the hardware for the e-GP centers, but training staff to operate the e-GP system and provide technical support to vendors.
The MCC Threshold Program comprises a $55 million grant over two years focused on anti-corruption ($35 million) and immunization ($20 million) activities. The Program will be implemented from 2007 – 2009.
All MCC Threshold Program activities